Rex Airlines warns Sydney Taree Grafton service at risk

The airline Regional Express is warning its service to Grafton and Taree will be scrapped if passenger numbers do not lift.

Rex Airline currently operates three return services between Grafton and Sydney each weekday, which stops at Taree.

A letter has been mailed out to residents in the Taree and Grafton communities, warning the route is currently unprofitable and is at serious risk.

General Manager of Network Strategy Warrick Lodge, said passenger numbers have to lift.

Since 2008 we've seen significant downturns in travel across most regional travel routes

Warrick Lodge, Rex Airlines

"We do need significant increases in numbers," he said.

"As our letter communicated, we're averaging 30 to 35 percent load factors and that's simply not sustainable to continue the current levels of service to both Grafton and Taree."

Mr Lodge said the Rex board will consider dropping the route later this year if passenger numbers do not rise.

He said numbers have fallen 30 percent in seven years.

"We entered the route during a period of regional air travel growth, but since 2008 we've seen significant downturns in travel across most regional travel routes right across Australia, not only with Rex," he said.

"So it is partly an effect of a broader downturn in economic conditions as well."